Coronavirus: Ghana pushes for debt relief for vulnerable countries

Ghana has called for a collective and coordinated global response to assist vulnerable countries to address the “unprecedented effects” of Covid-19.

Such a response, Ghana Foreign Affairs and Regional Integration Ministry reiterated, is needed to mitigate the harsh economic and financial effects of the pandemic.

“With the benefit of immediate debt relief, developing countries could focus on protecting vulnerable populations, preserve jobs and ultimately, avert consequential political and social instability,” the Ministry said in a statement to mark the AU Day on May 25.

According to the statement, Ghana supports the call for debt relief for African countries and a moratorium on the servicing of international loans including private loans.

Below is the full statement

AFRICA UNION DAY 2020

The African Union (AU) commenced this year with an ambitious theme “Silencing The Guns: Creating Conducive Conditions for Africa’s Development”. The Union has maintained this theme for the past three years. It is a reflection of Africa’s determination to end all wars, civil conflicts, gender-based violence and prevent genocide in the continent by the end of 2020.

At the dawn of this millennium and in the wake of post-Cold War geo-political realities, Africa, has survived the unbearable proxy wars of major global powers which have made African conflicts much more lethal due to the arms and ammunitions dumped on the continent. However, arising from a plethora of causes of which at the very heart are issues of governance, African conflicts have seriously undermined and challenged the continent’s socio-economic development, leaving in its wake, high incidence of poverty, disease and illiteracy in the continent, and a yawning development gap between Africa and other continents.

The United Nations Security Council in February 2019, passed Resolution 2457(2019) to endorse the AU’s initiative to end violent conflicts in Africa. The Resolution reaffirmed the need to address the multidimensional nature of peace and security challenges facing African countries emerging from conflict. The Resolution further highlighted the importance of a comprehensive and integrated approach for peace building and sustainable peace, with a view to preventing countries emerging from conflict from relapsing into more violence.

To tip the scales on the old order of civil strife and insecurity, contemporary African leaders are deploying targeted efforts to put the continent on an enviable pedestal of economic growth and prosperity. The Africa Continental Free Trade Agreement (AfCFTA) is one of such efforts by African leaders. The enhanced trade relations and growth from this initiative is estimated by the United Nations Economic Commission for Africa (UNECA) to be about Fifty-Two (52%) percent over current levels. Such a tremendous growth in economic activity, if fairly distributed across the continent, will greatly enhance employment and commercial opportunities. It will also, pool idle youthful hands available to disgruntled and belligerent warlords for conflict for productive ventures. This clear and pragmatic roadmap to leapfrog Africa onto a deserving path to Silence the Guns has regrettably been impacted by the emergence of the incapacitating COVID-19 pandemic.

The novel viral disease has devastated the world’s most robust economies and heightened uncertainty amongst the investor community. Despite the relatively lower morbidity among Africa’s victims, our economies, still very reliant on foreign aid and in-flows have taken a disproportionate hit. Thus, the impact of the disease on African economies have been very disruptive. Several countries in Africa – Ghana inclusive – have had their economic targets and ratings revised. This bleak outlook notwithstanding, Africa is optimistic of riding the storm and coming out successfully from the pandemic, with as minimal damage as possible.

Nonetheless, the unprecedented effects of the COVID-19 pandemic have underscored the need for a collective and coordinated global response to assist the world’s most vulnerable countries to mitigate the harsh economic and financial effects of the pandemic. The pandemic and its economic fallout highlight the longer-term efforts needed to strengthen the health systems, diversify economies and broaden domestic revenue sources of African countries. With the benefit of immediate debt relief, developing countries could focus on protecting vulnerable populations, preserve jobs and ultimately, avert consequential political and social instability. Ghana supports the call for debt relief for African countries and a moratorium on the servicing of international loans including private loans.

COVID-19 is another major test of the resolve of the AU and its Member States to advance development in the continent. While dealing with the pandemic, Africa cannot defer urgent action on plans and programs that will advance continental trade and development. It is, therefore, only through our collective efforts and resilience that we can position Africa in the right place among the comity of nations.

Long Live the African Union

Long Live our fortitude and resilience towards continental peace and development

Long Live Ghana